Source · Select Committees · Northern Ireland Affairs Committee
Third Report - The funding and delivery of public services in Northern Ireland
Northern Ireland Affairs Committee
HC 46
Published 26 March 2024
Recommendations
14
Acknowledged
Para 85
Consider lower income households' needs when Northern Ireland Executive examines revenue-raising options for public services.
Recommendation
We note that there have been calls that any consideration given by the Northern Ireland Executive to revenue raising should only take place once UK Government funding at levels equal to or above assessed need has been restored. The Northern …
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Government Response Summary
The government commits to implementing corporation tax devolution via a Joint Exchequer Committee and notes ongoing discussions for the next phase of the fiscal framework. It states the NI Executive needs to make difficult decisions on revenue-raising to ensure financial sustainability, but does not explicitly state how lower income households will be considered.
Northern Ireland Office
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Conclusions (2)
11
Conclusion
Acknowledged
Many of the structural, resource and funding issues facing Northern Ireland have been a long time in the making, but the lack of ministerial direction and accountability in recent times has not helped the plight of public services in Northern Ireland. Core reforms required across public services have not been …
Government Response Summary
The government acknowledges the severe funding situation for the PSNI and expresses an urge for a rethink by the Treasury, Northern Ireland Office, and the Northern Ireland Executive regarding the PSNI’s financial framework.
12
Conclusion
Acknowledged
Para 76
Decisions by UK Governments to reduce overall UK public spending have a significant impact on the funding Northern Ireland receives through the block grant, which makes up the vast majority of its expenditure. With tighter budgets in England, annual allocations to Northern Ireland under the Barnett formula have been squeezed.
Government Response Summary
The government acknowledges Northern Ireland's unique financial challenges and higher relative need, referencing ongoing discussions towards a full fiscal framework and existing structural changes like the 24% needs-based factor in the Barnett formula.